Wednesday, October 3. 2018

It seems hard to believe that parents could forget their child at the airport. Parents Forget Child at Airport. However, I did a similar thing and left one of our kids at the hockey rink. Remembering important items or memorizing information is easy to do. We are not forgetful, we just haven't been properly trained to record and recall memories. Your skills can be improved significantly with just a little practice and understanding. Watch the following and see how it can be accomplished. Enjoy!

Thursday, August 30. 2018

Many M&A projects begin in the wrong manner. Management teams should start with the strategic need for the M&A process as opposed to unplanned opportunities. The embedded video outlines the steps to be included in a company's M&A journey.

Tuesday, August 28. 2018

Many corporate teams have used SWOT analysis. There is another tool known as the PESTLE analysis. Pestle stands for Political, Economic, Social, Technological, Legal and Environmental. Please watch the following excerpt from a recent speech to delve further into the topic.Strategic Trends - PESTLE Analysis - Jim Lindell CSP CPA

Friday, April 13. 2018

Entrepreneurs must be comfortable with risk and uncertainty. Choosing the entrepreneurial path is not for the faint-hearted. In the following image note the number of businesses that started in any given year and the corresponding percentage of businesses that are still in existence as of March 2017. The Bureau of Labor and Statistics is the source of the data.

Entrepreneur - Business Starts and Still in Existence

This data shows that:

Only 80% of the businesses make it beyond their initial year of existence.

Slightly more than 69% of businesses continue through their second year of operation.

Approximately 50% of businesses only make it to the fifth year of operation.

Undertaking the entrepreneurial path is not easy. The odds of failure may be unacceptable for would-be entrepreneurs. It is imperative that prior to starting a business, an entrepreneur must be diligent about understanding: their vision, their product or service offering, the competitive market, potential risks (both SWOT and PESTLE analysis), the business' financial needs including cash flow, ramp up timeframe, business demand for time commitment beyond 40 hour work weeks and most importantly the impact on their personal life.

Monday, May 2. 2016

As you may know, the American Institute of CPAs (AICPA) announced an exciting proposal to create a new association with The Chartered Institute of Management Accountants (CIMA) that will represent and advocate for the entire accounting profession, while preserving the member bodies of both organizations. As a CPA in business for over 30 years, I am excited by this proposal because I believe it is the next logical step to meet the needs of our evolving profession. That’s why I will vote “yes” and I encourage you to do so as well.

CPAs are fast becoming thought leaders in the business world, and with our growing scope comes a need for broader skills and resources. This proposal would deliver that. While maintaining all the benefits we have as AICPA members, we would also receive automatic membership to this new association, providing access to more international research, tools and market insights to keep our skills sharp in rapidly changing business world. We would gain a ton and lose nothing. It’s as simple as that.

Also, the proposal has the support of the AICPA’s Board of Directors, governing Council, Business and Industry Executive Committee, Government Performance and Accountability Committee, and Women’s Initiatives Executive Committee; 52 state CPA societies; and employers and finance leaders in the U.S. and around the world.

Voting “yes” on this proposal is important to the CPA’s continued growth and success today and into the future.

Take action now
Voting is quick and easy, and I encourage you to join me in submitting your “yes” vote today. Personal and confidential ballot links were emailed out from the third-party vote administrator called, “AICPA Independent Tabulator.” If you missed it, you can visit www.directvote.net/aicpa to retrieve your voting credentials. But don’t wait — voting closes at 5pm ET on June 16. You can learn more about the proposal, by visiting www.aicpa.org/horizons.

Friday, January 15. 2016

The ability to accurately forecast the economy and the markets is similar to the search for the Holy Grail. This chart shows the previous two recessions as contrasted with the Industrial Production Statistics (G17) and the respective 3 and 12-month averages. Note that the crossover at the end of 2015 is very similar to the crossovers that occurred just before the onset of the last two recessions. I believe that this does not bode well for the rest of our economy. Six months from now, it will be easy to see in retrospect. The real challenge will be navigating through those six months.

Friday, September 4. 2015

When making your wedding vows, the idea of having an affair or mistress is not at the forefront of your thoughts. I will also suggest that many entrepreneurs have never considered being unfaithful to their spouse. However, the “love affair” or romance that an entrepreneur can have with their business can result in misplaced priorities.

Consider Charles Dickens’ literary anti-hero Ebenezer Scrooge. In a very sad and painful scene, Belle declares that she has been replaced by another idol.

For again Scrooge saw himself. He was older now; a man in the prime of life. His face had not the harsh and rigid lines of later years; but it had begun to wear the signs of care and avarice. There was an eager, greedy, restless motion in the eye, which showed the passion that had taken root, and where the shadow of the growing tree would fall.
He was not alone, but sat by the side of a fair young girl in a mourning-dress: in whose eyes there were tears, which sparkled in the light that shone out of the Ghost of Christmas Past.
“It matters little,” she said, softly. “To you, very little. Another idol has displaced me; and if it can cheer and comfort you in time to come, as I would have tried to do, I have no just cause to grieve.”
“What Idol has displaced you?” he rejoined.
“A golden one.”
“This is the even-handed dealing of the world!” he said. “There is nothing on which it is so hard as poverty; and there is nothing it professes to condemn with such severity as the pursuit of wealth!”
“You fear the world too much,” she answered, gently. “All your other hopes have merged into the hope of being beyond the chance of its sordid reproach. I have seen your nobler aspirations fall off one by one, until the master-passion, Gain, engrosses you. Have I not?”
“What then?” he retorted. “Even if I have grown so much wiser, what then? I am not changed towards you.”
She shook her head.
“Am I?”
“Our contract is an old one. It was made when we were both poor and content to be so, until, in good season, we could improve our worldly fortune by our patient industry. You are changed. When it was made, you were another man.”
“I was a boy,” he said impatiently.
“Your own feeling tells you that you were not what you are,” she returned. “I am. That which promised happiness when we were one in heart, is fraught with misery now that we are two. How often and how keenly I have thought of this, I will not say. It is enough that I have thought of it, and can release you.”
“Have I ever sought release?”
“In words. No. Never.”
“In what, then?”
“In a changed nature; in an altered spirit; in another atmosphere of life; another Hope as its great end. In everything that made my love of any worth or value in your sight. If this had never been between us,” said the girl, looking mildly, but with steadiness, upon him; “tell me, would you seek me out and try to win me now? Ah, no!”
He seemed to yield to the justice of this supposition, in spite of himself. But he said with a struggle, “You think not.”
“I would gladly think otherwise if I could,” she answered, “Heaven knows! When I have learned a Truth like this, I know how strong and irresistible it must be. But if you were free to-day, to-morrow, yesterday, can even I believe that you would choose a dowerless girl—you who, in your very confidence with her, weigh everything by Gain: or, choosing her, if for a moment you were false enough to your one guiding principle to do so, do I not know that your repentance and regret would surely follow? I do; and I release you. With a full heart, for the love of him you once were.”
He was about to speak; but with her head turned from him, she resumed.
“You may—the memory of what is past half makes me hope you will—have pain in this. A very, very brief time, and you will dismiss the recollection of it, gladly, as an unprofitable dream, from which it happened well that you awoke. May you be happy in the life you have chosen!”
She left him, and they parted. (1)

Entrepreneurs may forget the main reasons that they pursued being in business for themselves. Stephen Covey’s 2nd habit of highly successful people is, “Begin with the end in mind.” The earthly end of all of us leads to only one place. I have not seen a tombstone that showed the last 5 years of financial statements or cash available in the bank. Nor have eulogies focused on the rapid growth of the business or market share obtained. Tombstones discuss family. Eulogies will include business; however, they too are focused on family. Therefore, “beginning with the end in mind” focuses the entrepreneur on the importance of family and what trade-offs are acceptable and which ones are not.

As in Dickens’ text above, the entrepreneur must be on guard when he/she declares that they are running the business and making sacrifices for the benefit of the family. This is a dangerous and narrow path. At some point, the entrepreneur becomes so self-absorbed that their end goal changes unwittingly.
What should an entrepreneur do?

1. “Begin with the end in mind.” Write out the reasons for being an entrepreneur.
2. Make sure that family is part of your daily thought processes and priorities.
3. Commit to being at significant family events – this also means commit to NOT MISSING family events. By the way, your family should tell you what is important.
4. Do not bully those you love into justifying the reasons that the business becomes your mistress.

I can only wish that all of us “be happy in the life you have chosen!”

About the Author: Jim Lindell, CPA, CSP, CGMA is a best-selling author and speaker. Jim is a TEC Chairman (The Executive Committee), which is the Granddaddy of CEO coaching organizations and with its’ Vistage Affiliation is the World’s largest peer group for CEOs and Senior Executives. Jim has been Coaching CEOs through TEC since 2001. His website is www.thorstenconsulting.com. Jim’s latest book, “Controller as Business Manager” is available from the AICPA at http://bit.ly/1zGOYmz.

Thursday, August 13. 2015

During the 1950s and 1960s, being left handed was seen as a disadvantage. Great efforts were taken by teachers and parents to train students to use their right hand as opposed to their left hand for writing. As a consequence, many kids were forced to focus on hand writing techniques as opposed to learning techniques.

Unfortunately, many managers and coaches still try to force “left handed people to work as if they were right handed.” This metaphor illustrates how people are trained with specific techniques that may not be effective for that individual. Well-meaning coaches and managers may be too narrow in their approach to training or philosophy about business. Unfortunately, their technique or approach may be in conflict with the skills, intelligence or personality type of the individual being trained, managed or coached.

There is a significant danger when the coaching or training approach is “one size fits all.” Let’s consider this example as it applies to the role of a coach and their respective student, customer or employee.

Since coaching focuses on the coachee, let us begin with the left side of the diagram representing the individual that is to receive the coaching service, counsel or advice. There are three main levels of coaching services that an individual can receive:

1. Short term – Short term coaching is usually directed in one of the following areas:

a. The individual has a weakness that needs to be improved.

b. The individual has a serious issue, possibly resulting from disciplinary action, and behavioral change must take place.

2. Intermediate – Intermediate coaching is usually provided when there is a lack of knowledge. This knowledge is necessary for the person to advance to a different level in the organization.

3. Long-term – Long-term coaching is usually directed at individuals that are perpetual learners and are always seeking ways to grow themselves, the organization, and those around them.

In essence, these three levels represent the “needs” of an individual that is to be coached.

The right side of the graph represents the coach’s role. Note that there are two extremely significant principles that apply to a coach. The first is that a coach cannot allow their self-interest to get in the way of helping another individual. The second principle is that the coach should foster independence in the individual as opposed to dependence. Unless an individual is seeking a long-term learning relationship, most coaching assignments should have a specific task with a specific timeframe. The only type of ongoing coaching relationship should be a life-long learning relationship. Beware of the coach that is hired for a short term need who insists on a long-term relationship. The coach may be putting their self-interest ahead of the needs of the individual.

There are many skills a coach should possess including:

Facilitation skills

Counseling skills

Solid experience

Understanding of interpersonal skills and personality profiles

Ability to recognize learning skills of the person that they’re working with

Ability to recognize intelligence types

Desire and evidence of their continued learning.

Now we can reconsider the comparison of left handed and right handed people. A coach that only uses one approach without recognizing the limitations of that approach is not serving his customers well. Failing to understand the needs and styles of the individual being coached typically leads to short and unfulfilled coaching relationships. One of the main reasons coaching assignments do not work out well is that the coachee and the coach are not compatible. A successful coach will be flexible and capable of working in a variety of styles. The greatest of coaches will exhibit the most flexibility in working with a variety of people.

Therefore, it is important for coaches to evaluate personality types and intelligence types to determine how their skills must be altered to bring out the best in the individual.

About the Author: Jim Lindell, CPA, CSP, CGMA is a best-selling author and speaker. Jim is a TEC Chairman (The Executive Committee), which is the Granddaddy of CEO coaching organizations and with its’ Vistage Affiliation is the World’s largest peer group for CEOs and Senior Executives. Jim has been Coaching CEOs through TEC since 2001. His website is www.thorstenconsulting.com. Jim’s latest book, “Controller as Business Manager” is available from the AICPA at http://bit.ly/1zGOYmz.

Friday, June 19. 2015

I remember a story that was shared by a pastor. He said that "if giving a sermon and the argument is weak, pound loudly on the pulpit." When it comes to the economy, the stock market, the unemployment, the student loan debt, the extended automobile terms and interest rates - pundits are pounding loudly all around.

Jim Lindell

Jim Lindell is a National Speaker, Author, and TEC Chair. He is motivated by helping others improve their lives and businesses.
He is President of Thorsten Consulting Group, Inc.
Order Jim's new book - "Controller as Business Manager" Published by the AICPA.